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Whu are aiven the folowing information about two pecpertios: You wee analyzing the liea of purchasing Proceity 1 above. To waluas your uwaw, rou find

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Whu are aiven the folowing information about two pecpertios: You wee analyzing the liea of purchasing Proceity 1 above. To waluas your uwaw, rou find a comearable propety (Property 2 ) that has been cecenty traded at a 10 peccent cap rate. a) Use the direct capiaization method with the Year 1 expected cash flow to evaluate Property 1. c) Yoe decide to dig dewper in your anayeis, and you fnd out that the tenants oceupying Property 1 are curtenthy paying too much for rent. You expect that rects with be doen to thove in the Based on the outcome of your calculations in Question 1, substariale why discourted cash fow is a more accurale calcalation compared Question 2 to direct capitalumion when it comes to roal estafo valuation. Your answor should not exceed 100 words

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